The listed biotechnology company developing veterinary medicines for companion animals, together with contracted subcontractors, is working on the construction of a large-scale stem cell production facility, which will be one of the largest of its kind in the world.
The investment is covered by a conditional grant from the Polish Agency for Enterprise Development (PARP), which delays the availability of funds from this source. As a result, financing for the subsequent stages of construction, equipment purchases, and further operational development requires additional funding.
The company plans to issue new shares representing up to 8.51% of the increased share capital. Bioceltix’s plans will be put to a vote at an Extraordinary General Meeting (EGM) scheduled for October 9.
Bioceltix intends to raise capital to finance the construction and launch of the new stem cell factory by issuing up to 457,785 shares. The company has signed an investment agreement with Alternative Solution ASI and Kvarko Group ASI, under which these major shareholders will offer investors up to 457,785 of their existing shares admitted to trading on the Warsaw Stock Exchange (WSE) for sale via a public offering. The proceeds will then be used to purchase the same number of newly issued shares at the same price per share as obtained in the public offering, conducted through an accelerated book-building (ABB) process.
The agreement also provides for the possibility of Alternative Solution ASI selling an additional 120,000 existing shares within ABB, without the obligation to allocate the proceeds toward the capital increase. However, the priority remains raising funds for the new issue. The investment agreement also includes an intention to set the minimum share price at PLN 95. The EGM, at which resolutions regarding the new issue will be voted on, is scheduled for October 9. The offer will be conducted through investment firms selected by the company and the aforementioned shareholders. Bioceltix’s financial and IR advisor is ccgroup.
“The aim of the transaction is to ensure continuous financing for the construction of the large-scale stem cell facility and to cover operational expenses until the launch and validation of production. The new plant will also be co-financed by a grant from PARP’s FENG program, under which the project is valued at PLN 50 million net, with funding of PLN 17.35 million. Contrary to our earlier assumptions and analyses prepared by our advisors at the time of the FENG program announcement, the grant agreement signed in July 2025 stipulates that this is conditional funding,” said Dr. Paweł Wielgus, Management Board Member of Bioceltix.
The new facility is expected to provide the target production volumes of the company’s medicinal products intended for international sales under a production–licensing model. The funds raised will allow Bioceltix to commercialize its flagship projects: two therapies for dogs – one for osteoarthritis and one for atopic dermatitis – and a third for horses suffering from lameness.
Currently, production based on mesenchymal stem cell technology is carried out at Bioceltix’s own small-scale facility, which meets the highest pharmaceutical standards, confirmed by GMP certification. This ensures production of stem cells for R&D and clinical trials. The new plant will multiply maximum production capacity and will also include full analytical facilities and the complete production cycle of the proprietary ALLO-BCLX technology – from stem cell isolation through proliferation and cryopreservation, to the automated packaging of product doses and their storage.
Wielgus emphasized that Bioceltix is at a very dynamic stage of development, with clinical trials of innovative products having ended in significant success.
“Our drug registration procedures with the EMA are ongoing, and we expect the first recommendation in the first half of 2026. Earlier this year, new regulations on Good Manufacturing Practice required us to make additional adjustments in our current facility. We took possession of the new site this summer, and last week we signed an agreement establishing investment representation, giving the project a very concrete form. We are now designing detailed solutions for the new factory, which adds new budget items and updated valuations at this stage. Although we have been granted public support, the final terms place much of the risk on the company. Further tranches of the grant will take much longer to obtain than we initially assumed when applying. Our experience in the industry has taught us humility, which is why we decided that achieving success in this ambitious endeavor requires a greater margin of time and financial resources.
The funds raised will be used to finance the entire project through to the start of commercial production. In addition, a strong balance sheet position will provide comfort in negotiations with partners and improve our bargaining position. Of course, this plan is preliminary and still requires shareholder approval at the EGM in October. Planning and building a pharmaceutical plant is a large project, but the benefits will be even greater. Today, at maximum load, we can produce up to 30,000 doses annually. This is sufficient to begin commercial sales once the product is authorized on the European market, even before full-scale production at the new facility is launched,” Wielgus commented.
Source: ManagerPlus.pl
